Krona LLC -
company is a private family company, engaged in processing wood and producing various types of lumber, including plywood and pellet.
The Production is based on applying advanced technologies, using modern technology and equipment, which allows to achieve the highest quality of manufactured products highly demanded among consumers.
The company has its own production in different commodity regions of Russia, in Karelia, Komi Republic.
The entire production volume is built on our own raw material base, is export-oriented, and has a wide sales network in the national market, through wholesale bases and specialized stores.
The product consumers are companies from Germay, Finland, Italy and other countries, including also the various companies of national market.
The company is one of the main suppliers of LeroyMerlin, which is the largest French retail of home building materials, a corporation founded in 1923.
The quality certificate issued for pellets produced by the company reflects the highest level of quality unattainable for most competing companies operating in the same industry (can be found in the "Documents" section).
The purpose of the inward investment of the company is the task of expanding the existing production of pellets and plywood.
The company is a high profit production with confident market shares in the market of its products, but the market capacity and demand for the products produced allows the company to expand production not only through profits, but also through investments, which will reduce the time it takes to introduce new production facilities with a subsequent increase in sales of its own products.
Production of pellets is a highly profitable and high-margin production. The basis of raw materials for production is the waste of the main production of sawnwood and various wood processing wastes.
Actually the cost of those raw materials is close to zero, as before the introduction of processing technologies, the pellet was burnt.
Today due to high demand for the products, the company does not deal with its own exports, because the importer companies take the products from the warehouse of the company and cover all the costs of customs, logistics of goods to the countries, from where they are imported on their own.
The production line, which can be launched, allows to fully compensate the costs and gain profit even during the first year of work, after the installation and the start-up.
The company plans to launch pellet production with an additional production capacity of up to 200 thousand tons of pellets per year on the first stage of the investment plan.
It is planned to purchase and mount, successively ten lines with total cost of $ 20 million ($ 2 million each) with a capacity of 2 tons per month, which will be more than 200 thousand tons per year.
The term of the assembly work for such a line does not exceed one month, that is, when attracting already $ 2 million, the company can start the installation and production of the line.
It should also be noted that lately the price for sawn timber has increased by more than 100% and there is still a shortage of sawn timber in many positions in Europe. Krona's company, entering the European market, through the conclusion of a number of agreements with European partners, needs to increase the volume of production, which also requires additional investments.
Each token of the company is equal to 1/100 cubic meter of the lining produced (this is done for the convenience of counting and token quotes). In reality, each token holder has the right to exchange the entire volume of the token for an equal volume of lumber at a discount, depending on the volume of purchased tokens.
The price of the lining is fixed and does not change, despite seasonal price fluctuations, which allows the token to be used as a financial tool for investment purposes.
Krona's management is a team of professionals who have been working in the industry for many years. The results of its activities speak for themselves - technological production, quality and impeccable service, which makes Krona a reliable partner.
Sawed wood is one of the most popular manufactured products in Russia. It is focused more on export - 71% is sent abroad. The main consumer of Russian sawn timber is considered to be China, which accounts for about 61% of the total volume.
Today in Russia there are more than 10,000 manufacturers, most of them are small private enterprises. The income from the production of lumber in our country is much lower than in foreign countries. Even so, Russia occupies a leading position among suppliers.
The changes in the Forestry Code of 2008 had a favorable effect on the development of the industry - the procedure for obtaining timber for lease was significantly simplified, and auctions began to be actively held. The changes are aimed at increasing the market volume, optimizing the production process and wood processing.
Rise in prices
Coniferous sawn timber remains one of the most popular because of its low cost, ease of processing and availability. An increase in prices for highly processed materials is forecasted. This will lead to an increase in the value of the Russian domestic market to the European level.
Development of wood processing complexes
If now most of the products are produced by small private enterprises, then in the future there is a high probability of their merger into production complexes of a full cycle. Thus, the enterprises will carry out all stages of production: from procurement to waste disposal.
Decrease in the level of exports
Roundwood production is expected to grow significantly in the coming years. For example, from indicators for 2013 of 145 million m3, the amount of production will increase to 300 million m3 in 2030.
Increase in domestic consumption
A decrease in the export of Russian sawn timber products and an increase in domestic consumption are forecasted. This will be facilitated by the state program for the development of low-rise housing construction. This program will increase the number of prefabricated timber houses to 2.8 million m2 by 2020. And by 2030, the volume may reach 69 million m2.
In addition to the development of wooden housing construction, a program for the construction of forest roads is being actively developed. The lack of full access to the territory reduces the number of resources available for use. The program provides for the development of new forest areas by private and state enterprises.
Caring for the environment has become a hallmark of a quality manufacturing enterprise. The development of waste-free production allows not only to take care of the environment, but also to make waste disposal a profitable business. For example, to produce fuel briquettes or pellets from compressed waste. In Europe, such pellets cost € 150-200 / ton, in Russia the cost is lower, but the market is developing and the price will increase accordingly.
Analysts disagree in their forecasts for the current year, but assume that sawn timber prices will rise and demand for softwood products will increase. The question is whether this will lead to an increase in prices for sawn timber, which are intended for the construction of houses, which will affect the value of real estate. The dynamics of the development of the construction industry has a direct impact on market size, especially in China, the United States and Japan, which are most dependent on imports.
European countries are developing more efficient solutions, expanding sales markets and actively entering the Asia-Pacific region.
Finland is the second largest importer of Russian timber. But lately it has been actively increasing the deforestation of its forests and developing programs for the development of its own market. This may lead to increased competition for Russian products in the markets of Japan and China.
Dynamic changes in price indicators on the European market are not expected, one of the reasons for this is Brexit.
Over the past six months, timber has increased in price by an average of 30%, said Ivan Melekhov, co-owner of FiNEX Handcrafted Floors brand, in an interview with DP. At the same time, some tree species have risen in price by 80%. Lumber was no exception: last spring a cubic meter cost an average of 11.13 thousand rubles, now - about 26 thousand rubles. Since November 2020, the cost of timber and edged boards on the Russian market has almost doubled.
The Russian market is highly dependent on global trends. Olga Polyanskaya, head of the Department of Economics, Accounting and Analysis of Economic Activities, St. Petersburg State Forestry University, notes that in 2021 the cost of sawn timber broke records, which is associated with the rise in stock prices in America, which led to a shortage.
“The US sawn timber cost index has quadrupled over the past six months. The cost of round timber has doubled, and in some regions even tripled!” Exclaims Aleksandr Shestakov, General Director of the First Furniture Factory. , since we have a dependence on imported components in production. But it is worth noting that domestic raw materials have risen in price. "
in our opinion, this is a compelling case for investing in one of the most sought-after commodity products.